Bouygues Group presentation Q1 2016 BUILDING THE FUTURE IS OUR - - PowerPoint PPT Presentation

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Bouygues Group presentation Q1 2016

BUILDING THE FUTURE IS OUR GREATEST ADVENTURE

May 2016

This presentation contains forward-looking information and statements about the Bouygues group and its businesses. Forward-looking statements may be identified by the use of words such as “will”, “expects”, “anticipates”, “future”, “intends”, “plans”, “believes”, “estimates” and similar statements. Forward-looking statements are statements that are not historical facts, and include, without limitation: financial projections, forecasts and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance of the Group. Although the Group’s senior management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Group, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and undue reliance should not be placed on such statements. The following factors, among others set

• ut in the Group’s Registration Document (Document de Référence) under the section headed Risk factors (Facteurs de risques), could

cause actual results to differ materially from projections: unfavourable developments affecting the French and international telecommunications, audiovisual, construction and property markets; the costs of complying with environmental, health and safety regulations and all other regulations with which Group companies are required to comply; the competitive situation on each of our markets; the impact of current or future public regulations; exchange rate risks and other risks related to international activities; risks arising from current or future litigation. Except to the extent required by applicable law, the Bouygues group makes no undertaking to update or revise the projections, forecasts and other forward-looking statements contained in this presentation.

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• 1. BOUYGUES GROUP

PRESENTATION

MahaNakhon Tower – Bangkok, Thailand

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PROFILE

Who we are (1/2)

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The Bouygues group provides products and services that meet essential needs (housing, transportation, information, communication, etc.), thereby driving progress for society

Who we are (2/2)



3 businesses with different cycles



A stable share ownership structurea

Key figures in 2015

120,254 employees



€32,4bn sales



€941m current operating profit



€403m net profit attr. to the Group



€2.6bn net debt

A diversified industrial group

(a) At 31 December 2015: 345,135,316 shares and 489,224,737 voting rights. SCDM is a company controlled by Martin and Olivier Bouygues.

SCDM Employees Other French shareholders Foreign shareholders 6 20.4% 21.4% 20.4% 37.8%

As of 31 December 2015

An industrial group acting in three markets

Transport infrastructure (1986) Building & Civil Works (1952) Property (1956)

96.6 % 100 % 100 %

CONSTRUCTION ACTIVITIES

43.7 %

TELECOMS

90.5 %

MEDIA

(1994) (1987)

28.3% as of 28 January 2016

(2006)

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■ Market with long-term growth opportunities ■ Regulatory or technological changes ■ Favorable financial conditions ■ Ability to bring managerial skills ■ Structural reduction of free cash-flow generation due to

 lack of competitiveness, or…  market no longer offering long term growth opportunities

■ Better opportunities for use of proceeds ■ Acceptance that Bouygues is no longer the best shareholder

• Colas / Screg in 1986
• TF1 in 1987
• Bouygues Telecom in 1994
• Alstom in 2006

Portfolio management as industrials entrepreneurs

• Maison Bouygues in 1990
• Bouygues Offshore in 2002
• Saur in 2005
• Eurosport International and Cofiroute in 2014

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Entering new businesses under good conditions Disposing of businesses under the following circumstances

3.2% current op. margin

A world leader in construction activities

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A world leader in construction and maintenance of transport infrastructure

Key competitive advantage thanks to vertical integration with a widespread industrial footprint (aggregates, emulsions, asphalt mix, bitumen...)

The leading French property developer

A pure player acting in both residential and commercial real estate development Developer and urban operator with a strong expertise in green properties

A world leading contractor in building & civil works, energy and services

A recognized expertise at every stage of a project from design to construction, operation, maintenance, and financing arrangement A leader in sustainable construction Construction activities 2015 key figures

€26.0bn sales €831m current op. profit

€2.0bn sales A major actor of the fixed and mobile French telecom market

Bouygues Telecom aims to bring the benefits

• f digital technology to as many people as

possible

The leading private television group in France

TF1 is an integrated media group that provides a unique offering on all media

10 TF1 2015 key figures

The French leading media group and a major actor in Telecom

€158m current operating profit 7.9%current operating margin

Bouygues Telecom 2015 key figures

€4.5bn sales €752m EBITDA 19.7% EBITDA margin

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KEY STRENGTHS

Strong and distinctive corporate culture



Men and women sharing the same values within the Group: respect, trust and fairness



Construction is a “good management school”



Project management skills and empowerment 

Strong mobility within the Group

Pragmatic – Cautious – Opportunistic – Entrepreneurial

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2016 economic growth (source: IMF) Construction businesses: regional sales as a proportion of total international sales in 2015

Targeted international expansion

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International expansion started 50 years ago Bouygues operates in growing countries with a low-risk profile

South America: -0.3% 2% US: +2.8% Canada: +1.7% North America

27%

UK: +2.2% Switzerland: +1.3% Poland: +3.5% Northern and Central Europe

40%

Southern Europe: +1% 1% Africa: +4.3%

10%

Middle East: +3.8%

1%

Asia/Oceania: +5.4%

19%

Russia: -0.6%

x%

Green: region classified A by Coface (low risk) Orange: region classified B and C by Coface (medium to high risk)

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Open innovation driving performance

Widespread adoption of the BIM (Building Information Management) Intelligent and collaborative work spaces to bring flexibility Wattway, the world’s 1st solar road developed with Inesa IoT offering services based on LoRa technology (a) The French National Solar Technology Institute

Anticipate on future customers’ needs to bring progress and well being to society

Collaborative innovation process with external partners

Create value for our customers Improve our working processes and protect

• ur employees

Exosqueleton developed by Colas and RB3D TF1 innovation division

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

Ongoing adaptation thanks to highly variable cost structure in the construction businesses

 Cost structure driven by project  Flexibility of personnel costs: sub-contracting, temporary workers, ability to hire employees for the duration of the contract  Between 60% to 100% variable costs depending on countries and projects



Long experience to manage economic cycles



Ability to deeply transform businesses facing structural market changes (Bouygues Telecom, TF1,…)

Ability to adapt

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STRATEGIC PRIORITIES

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

Growing infrastructure needs for construction activities

 Drivers: demographic growth, urbanization, saturated and aging infrastructures

• 1 billion more people in the world by 2030a
• 2 billion people concentrated in 600 cities, and 75% of these cities in emerging countriesb by 2025

 Development of new offerings arising from environmental constraints

• 40% increase of greenhouse gas effects by 2030c
• From the building to the sustainable city

♦ Conciliate the energy efficiency of the buildings and infrastructures with the improvement of the living conditions



Exponential growth of digital uses in the telecoms and media

 Multiplication of screens and objects constantly connected to internet  Bringing together the world of television and internet - New ways to consume contents

Positioning on growing markets underpinned by solid demand

(a) Source: United Nations (b) Source: Mc Kinsey Global Institute (c) Source: United States Environment Protection Agency

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Bouygues group's strategic priorities (1/2) Targets for the Group

• Market high value-added offers to customers and increasingly

innovative services for the benefit of the greatest number of people

• Ensure regular free cash flow generation over the long term
• Create value for all its stakeholders

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Bouygues group's strategic priorities (2/2)

Strengthen its position as a world leader in construction and civil works, energy and transport infrastructure

• Continue targeted growth on

international markets

• Broaden the portfolio of offers

with innovative products and services

• Assert the competitive edge in

sustainable construction

Reinforce its leadership in free TV and develop new sources

• f growth less dependent on

the advertising market

• Consolidate economic model

in free TV

• Keep pace with changes in

customer behaviour

• Increase its position in

content

• Develop new digital offering

Play a major role in the explosion of digital usage and return to sustainable growth

• Creating value by developing

usage in the Mobile

• Pursuing growth in the fixed

business by widening access to as many people as possible

• Developing BtoB and IoT

services

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LONG-TERM SUSTAINABILITY

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Corporate Social Responsability

Bouygues’ commitments



Strengthen the Group’s position as a benchmark player in innovative solutions for infrastructures and cities, by responding to societal expectations, as well as natural resources, climate and biodiversity crises



Act as a socially responsible company in terms of ethics, purchasing practices, risk management and respect for stakeholders



Promote the professional fulfilment of employees, whilst maintaining their physical well-being, guaranteeing equal opportunities, and fighting against all forms of discrimination

Presence in 5 SRI indices in 2015

Responsible employer to promote human capital development

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Human development to leverage

technical and managerial skills



Each year, about 4% of the payroll is spent on training, significantly above the minimum standard in France

Security and health to mitigate the

risk linked to the nature of Bouygues’ operations



The frequency of accidents has been

divided by 2 in 10 years Employee savings plan to improve

long-term compensation

 With around 60,000 employees holding

Bouygues’ shares, Bouygues is the CAC 40 company with the highest level of employee share ownership

Average seniority 12 years on averagea at

Bouygues, sign of employees’ loyalty and well being at work

Protect Share Educate

(a) French perimeter

Committed to energy transition

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Bouygues Construction’s Head Office St Quentin-en-Yvelines, France Green Office Bordeaux, France Wattway

The world’s 1st solar road

 Installed directly on existing

pavement

 Grip and resistance with thickness

• f just a few millimeters

 20 m² of Wattway panels provides

electricity to power a single home World’s 1st building to receive the highest ranking in three different eco-certifications

 HQE, LEED and BREEAM  On-site power generation

1st large-scale positive-energy

• ffice building concept in France

 Comfort and low energy

consumption

 Renewable energy production  Real-time energy management

solution

Nextdoor Issy les Moulineaux, France Renovate Provide urban services Construct low carbon buildings

Collaborative and innovative work spaces in urban environment

 Low carbon response to new

ways of working

Enhance soft mobility

A developer of sustainable urban environments

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Hikari (Lyon's Confluence district, France)

1st positive-energy mixed-use development in France

Eikenott (Gland, Switzerland)

The biggest eco-neighbourhood in French-speaking Switzerland

Greencity (Zurich, Switzerland)

1st eco-neighbourhood certified with the 2,000 watts label in Switzerland

An integrated eco-neighbourhood offer



Ability to offer local authorities, with partners, high-performance and integrated technical solutions to use resources more efficiently as well as designs that make places pleasant to live in

Resilient FCF generation

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 Diversity of the businesses allowing sustainable level of free cash flow even during economic downturns  Group FCF: around €900m a year on average between 2006-2013

 2014 and 2015 will mark the low point of the FCF generation

(a) Excluding acquisition of frequencies

• 125

65 487 ,0 ,200 ,400 ,600 ,800 1,000 1,200 1,400 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

FCF generation by sector of activity (€m)

Bouygues Telecom TF1 Construction businesses 800 600 400 200

• 200

a a a

161 368 420 617 497 450 695 784* 488 605 812 819 437 487

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

384 379 535 827 1,0051,1581,2361,079 884 1,020 949 1,005 841 831 2.7% 2.8% 3.7% 4.9% 5.3% 5.2% 5.0% 4.6% 3.8% 4.2% 3.7% 3.9% 3.2% 3.2% 0.0% 0.1% 0.2% 0.3% 0.4% 0.5% 0.6%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Illustration of the construction businesses sustainability

Solid profitabilitya

Current operating profit (€m) and margin

Recurring FCF generationa (€m)

1,185 1,689 2,259 2,440 2,495 2,794 2,587 3,547 3,175 3,404 3,281 3,308 3,785 3,837

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

*Excluding the disposal by Axione of its stake in Public Initiative Networks for €163m

High net cash positiona (€m)

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(a) 2013 figures restated for IFRS 11

Around €550m a year on average since 2002



Financing through fixed rates bonds, without triggers or covenants, with evenly spread repayment schedule



High level of liquidity with available cash at €8.9bn at end-2015



€3.6bn cash and €5.3bn undrawn MLT facilities 

Bouygues’ credit ratings



Moody’s: Baa1, stable outlook



Standard & Poor’s: BBB, stable outlook

Sound financial profile

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2,473 3,862 4,172 4,435 3,216 2,561 2010 2011 2012 2013 2014 2015

Group’s net debt (€m, at end-December)

Net debt/EBITDA

0.7 1.2 1.5 1.6 1.3 1.1

Gearing 23% 40% 41% 51% 34% 28%

 Sustainable dividend policy  Additional cash return to shareholders

 2004 dividend (paid in 2005): exceptional dividend (€5/share for a total of €1.7bn) following the SAUR disposal  2011: share repurchase tender offer for €1.25bn

(a) Dividend yield based on closing price

0.5 0.8 0.9 1.2 1.5 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Long-term dividend policy

5.3%

28 Dividend yielda:

4.4% 5.0% 2.6% 6.6% 2.5% 2.2% 2.2% 2.7% 7.1% 5.8% 5.3% 4.4%

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• 2. BOUYGUES RESULTS

 HIGHLIGHTS AND KEY FIGURES  REVIEW OF OPERATIONS  FINANCIAL STATEMENTS  OUTLOOK

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 Bouygues Telecom’s commercial and financial results confirmed

the turnaround started in 2015

 The construction businesses delivered a solid commercial performance  Full-year outlook is confirmed

Q1 2016 highlights

Group key figures (1/2)



As every year, Q1 results are not indicative of the Group’s full-year performance mainly due to Colas’ seasonality

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(a) Down 2% like-for-like and at constant exchange rates (b) Including €22m of non-current charges at Bouygues Telecom in Q1 2015 and €87m of non-current charges in Q1 2016 in all businesses (see details on slide 39) (c) See reconciliation on slide 46

€m Q1 2015 Q1 2016 Change

Sales 6,731 6,534

• 3%a
• /w France
• /w international

4,503 2,228 4,361 2,173

• 3%
• 2%

Current operating profit/(loss) (194) (140) +€54m Operating profit/(loss) (216)b (227)b

• €11m

Net profit/(loss) attributable to the Group (157) (180)

• €23m

Net profit/(loss) attributable to the Group excl. exceptional itemsc (145) (137) +€8m

Group key figures (2/2)



Improved profitability at Bouygues Telecom



Dunkirk refinery’s losses (€15m) have been booked as non-current charges in Q1 2016

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€m Q1 2015 Q1 2016 Change Current operating profit/(loss) (194) (140) +€54m

• /w Bouygues Telecom

(62) (33) +€29m

• /w construction businesses

(146) (116) +€30m

• /w TF1

28 15

• €13m

Group financial position strong



The change in net debt between end-December 2015 and end-March 2016 mainly reflects

 Usual seasonal impacts  The proceeds from Alstom’s public share buy-back offer (€996m)  The payment of the 1st installment of the 700 MHz frequencies (€117m) and the acquisition of Newen Studios (€291m at 100%)

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€ million End-Dec. 2015 End-March 2016 Change End-March 2015 Change Shareholders' equity Net debt Net gearing 9,293 2,561 28% 8,897 3,524 40%

• €396m

+€963m +12pts 9,308 4,264 46%

• €411m
• €740m
• 6pts

 HIGHLIGHTS AND KEY FIGURES  REVIEW OF OPERATIONS  FINANCIAL STATEMENTS  OUTLOOK

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Construction businesses

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The largest solar farm in South-East Asia - Negros Island in the Philippines

Solid commercial performance in the construction businesses



High level order book: €29.9bn at end-March 2016

 Up 3% vs. end-December 2015 

Strong international presence

 57% of the order book at Bouygues Construction and Colas coming from international markets (stable vs. end-March 2015)

37 17,331 18,243 19,830 19,539 2,890 2,485 2,421 2,601 7,531 8,064 7,849 7,723

End-March 2013 End-March 2014 End-March 2015 End-March 2016

Colas Bouygues Immobilier Bouygues Construction

Order books (€m) €28.8bn €27.8bn

• 1%

€30.1bn €29.9bn

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

Building and civil works

 Significant project wins: Louvre Post office, extension of Calais harbour (~€300m), Alto tower in La Défense (~€200m)  Stable order book at Bouygues Construction at end-March 2016

• vs. end-March 2015



Continued growth in residential market thanks to the Pinel buy-to-let law and wider access to zero-interest loans

 Residential property reservations in France at Bouygues Immobilier up 12% vs. Q1 15

 After 2 years of decline (-14% in 2014 and -11% in 2015), Colas’ sales in French roads market slightly down, in line with full-year expectations

 Down 3% in Q1 16 vs. Q1 15

First signs of a gradual stabilization in France

9,796 9,417 8,589 8,585

End-March 2013 End-March 2014 End-March 2015 End-March 2016 Order book in France at Bouygues Construction (€m)

293 306 352 393

Q1 13 Q1 14 Q1 15 Q1 16 Residential property reservations in France at Bouygues Immobilier (€m)

+12% 0%

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On track to achieve targets in a 4-operator market

 Good commercial and financial performance in Q1 16, confirming

the turnaround started in 2015

 Bouygues Telecom has the strengths necessary to achieve its targets

in a market with 4 operators

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(a) Machine-to-Machine



Good Q1 2016 performance in a highly competitive market

 +240,000 new mobile customers in Q1 16  +664,000 new mobile customers excl. MtoMa at end-March 2016 (vs. end-2014)  +151,000 new plan customers excl. MtoMa in Q1 16

Total net growth of mobile customers ('000)

Continued growth in mobile activity

• 4

22 25 73 146 147 149 101 151 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16

Plan net adds excluding MtoMa (‘000) 101 199 328 504 664 1,000 152 312 520 769 1,009

Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Mobile excl. MtoM Mobile incl. MtoM Target

a a

Bouygues Telecom’s 4G leadership boosting data usage



Fast 4G penetration

 4G customersa: 55% of mobile base excluding MtoMb at end-March 2016 

4G users consume on average 2.7 GB/monthc



Mobile customers consume on average 1.6 GB/monthc

 Average data usage tripled in 2 years

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(a) Customers having used the 4G network in the last 3 months (Arcep definition) (b) Machine-to-Machine (c) Cellular 3G or 4G data consumption, excluding Wi-Fi

1.7 2.2 2.7

Q1 2014 Q1 2015 Q1 2016

Average data usage by Bouygues Telecom customersc(GB/month)

All customers Active 4G customers

0.5 1.0 1.6

3,500 4,100 4,600 5,100 5,600

End-Q1 15 End-Q2 15 End-Q3 15 End-Q4 15 End-Q1 16

Active 4Ga customers ('000) and share of the mobile subscriber base excluding MtoMb 55% 51% 46% 42% 36%

a



Fixed broadbanda subscriber base of 2.9m

 Additional 71,000 new customers in Q1 2016

• f which 20% on FTTHb



On track with the target of 1m additional fixed customers at end-2017 vs. end-2014

Continued growth in fixed broadband

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96 174 268 360 431 1,000

Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Year-to-date Target

Total net growth of fixed broadbanda customers (‘000)

(a) Includes broadband and very-high-speed broadband subscriptions (b) Fibre-to-the-Home: roll-out of optical fibre from the optical connection node (place where the operator’s transmission equipment is installed) to homes or business premises (Arcep definition)



Q1 16 total sales up 6% vs. Q1 15

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Strong improvement in sales

• 4%
• 2%

0% 1% 4%

Q1-15 Q2-15 Q3-15 Q4-15 Q1-16

YoY quarterly sales from network evolution

• 2%

0% 4% 4% 6%

Q1-15 Q2-15 Q3-15 Q4-15 Q1-16

YoY quarterly total sales evolution



Q1 16 sales from network up 4% vs. Q1 15

On track towards 25% EBITDA margin target in 2017



EBITDA at €146m, up 24% vs. Q1 15

 As a reminder, Q1 EBITDA includes the impacts of IFRIC 21 which affect the timing of recognition of some taxes



EBITDA margin up 2.3 pts vs. Q1 15

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€m

Q1 2015 Q1 2016 Change vs. Q1 2015

Sales

Sales from network

1,063

932

1,131

971

+6%a

+4%

EBITDA

EBITDA/Sales from network

118

12.7%

146

15%

+€28m

+2.3 pts

Current operating profit/(loss) (62) (33) +€29m Operating profit/(loss) (84)b (55)b +€29m

(a) Up 6% like-for-like and at constant exchange rates (b) Including non-current charges of €22m in Q1 2015 and of €22m in Q1 2016, mainly related to the rollout of the network sharing agreement with Numericable-SFR

Long-term competitive edge in 4G network



Bouygues Telecom is reinforcing its 4G leadership

 Deeper 4G network through carrier aggregation

• Investment in 25% of French spectrum

with the best ratio of spectrum per user

• 4 bands available on 4G to improve speeds

 Wider 4G network

• Network sharing to extend coverage while optimizing

capex/opex

• 4G coverage target of 99% of population in 2018

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5 10 10 20 15 15

Bouygues Telecom’s spectrum portfolio, in MHz duplex (as of June 2016) 700 800 900 1800 2100 2600

4G compatible

75% 82% 99%

2015 2016 2018 National 4G coverage (% of pop.)

Best in class in mobile quality network



Ranked first or second in any mobile survey

 nPerf Q1 2016 score

♦ #1 in 4G connexion rate ♦ #2 in global 2G/3G/4G final score  4Gmark, March 2016 ♦ #1 in 4G connexion rate ♦ #2 in download speeds and global score  Rootmetrics, H2 2015 ♦ #1 in download speeds in Lyon ♦ #2 in download speeds in Paris and Marseille

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Access to the full range of infrastructure in Fixed



Unbundling DSL network in strategic areas

 >16m households with more than 1,500 central offices at end-2015 

Very-High-Speed offers accessible to almost 8m households through NC-SFR network



Co-investment in FTTHa infrastructure

 Very dense areas: horizontal shared with NC-SFR, vertical bought or rented  Less dense areas: flexible model allowing rental or co-investment by steps of 5% with Orange  A total of 6.5m premisesb committed

• 1.6m premisesb already marketed at end-March 2016
• An objective of 2m premisesb marketed by end-2016

48

(a) Fibre-to-the-Home: roll-out of optical fibre from the optical connection node (place where the operator’s transmission equipment is installed) to homes or business premises (Arcep definition) (b) Number of Bouygues Telecom fibre optic horizontal and vertical connections

Competitive Mobile and Fixed offers

 Best value for money plans  Content differentiation strategy with bonuses

• Integration of bonuses in Sensation plans (Spotify, Canal Play Start, Gameloft, B.tv)

 The most competitive plans in the market in Fixed

49

* +€3/month of box rental * +€3/month of box rental

 HIGHLIGHTS AND KEY FIGURES  REVIEW OF OPERATIONS  FINANCIAL STATEMENTS  OUTLOOK

50

Condensed consolidated income statement (1/2)

51

€ million Q1 2015 Q1 2016 Change Sales 6,731 6,534

• 3%

Current operating profit/(loss) (194) (140) +€54m Other operating income and expenses (22)a (87)a

• €65m

Operating profit/(loss) (216) (227)

• €11m

Cost of net debt

• /w financial income
• /w financial expenses

(72) 10 (82) (62) 6 (68) +€10m

• €4m

+€14m Other financial income and expenses 13 (6)

• €19m

(a) Non-current charges at Bouygues Telecom in Q1 2015 and in all businesses in Q1 2016 (see details on slide 39)

Condensed consolidated income statement (2/2)

52

€ million Q1 2015 Q1 2016 Change Income tax 118 89

• €29m

Share of net profit of joint ventures and associates

• /w Alstom

9

0a

9

0b

€0m

€0m

Net profit/(loss) from continuing operations (148) (197)

• €49m

Net (profit)/loss attributable to non-controlling interests (9) 17 +€26m Net profit/(loss) attributable to the Group (157) (180)

• €23m

Net profit/(loss) attr. to the Group excl. exceptional itemsc (145) (137) +€8m

(a) After taking into account Alstom’s contribution to Bouygues' net profit and a partial reversal of the write-down against Bouygues’ interest in Alstom recognized in 2013 (b) After taking into account Alstom’s contribution to Bouygues' net profit, the impacts on Bouygues’ accounts of the sale of Alstom’s Energy business, the public share buy-back offer carried out in January 2016 and the reversal of the balance of the write-down recognized at Bouygues at 31 December 2015 (c) See reconciliation on slide 46

(2,561) (3,524)

+835 (122) (1,559) (117)

(2561,0)

Change in net cash position (1/2)

53

(a) Including Alstom’s public share buy-back offer and the acquisition of 70% of Newen studios (b) Including put option on Newen Studios

Operations Othersb Acquisitions / Disposalsa 700 MHz Frequencies Net cash at 12/31/2015 €m Net cash at 03/31/2016

Q1 2015 (3,216) (2) + 12

• (1,058)

(4,264)

Change in net cash position (2/2)

+144

€m

• 1,559
• 366
• 1,337

Breakdown of operations

(a) Net cash flow = cash flow - cost of net debt - income tax expense (b) Operating WCR: WCR relating to operating activities + WCR relating to net liabilities related to property, plant & equipment and intangible assets + WCR related to tax

54 Net cash flowa Net capital expenditure Change in the

• perating WCR & otherb

Q1 2015 +87

• 287
• 858

(1,058)

 HIGHLIGHTS AND KEY FIGURES  REVIEW OF OPERATIONS  FINANCIAL STATEMENTS  OUTLOOK

55

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

Construction businesses continue to target growth in international markets and broaden the portfolio of offers with innovative products and services

 Profitability expected to improve starting in 2016



Target of a return to long-term growth in sales and profits confirmed at Bouygues Telecom

 EBITDA margin target of 25% for 2017  Full effect of savings plan (at least €400m in 2016 vs end-2013)  Capital expenditures of €750 to 800m in 2016



Increase in non-current charges at the Group level

 ~€270m of non-current charges

 Group profitability should continue to improve in 2016

Outlook for 2016 confirmed

57

• 3. ANNEX

Manhattan Loft Gardens - London

7,397 7,607 5,573 9,017 6,064 4,395 7,439 3,292 2,465 2,883 2,576

End-March 2015 End-Dec 2015 End-March 2016 Long-term order book (beyond Y+5) For execution from Y+2 to Y+5 For execution in Y+1 For execution in Y

Key figures at Bouygues Construction

58

Order book at end-March 2016 (€m)

France 44% Europe (excl. France) 25% Asia & Middle East 22% Africa 4% Americas 5%

• 1%

YoY

€ million Q1 2015 Q1 2016 Change

Sales 2,779 2,771 0%b

• /w France

1,389 1,295

• 7%
• /w international

1,390 1,476 +6%

Current operating profit

Current operating margin 71 2.6%

82

3.0%

+€11m

+0.4pts

Net profit att. to the Group 51 47

• €4m

(b) Stable like-for-like and at constant exchange rates

ANNEX

€19.8bn €19.3bn €19.5bn 1,675 1,497 1,243 1,674 895 1,112 1,487 1,485 1,292

2,787 2,984 3,623 2,966

End-March 2013 End-March 2014 End-March 2015 End-March 2016 (a) Definition: contracts are booked as

• rder intakes at the date they take effect

Order intakea (€m)

• 18%

France

+35%

• 46%

International

• /w NorthConnex contract (Australia)

+9% excl. NorthConnex

• 13% excl. NorthConnex

2,010 2,122 2,184 411 494 417 2,421 2,616 2,601 End-March 2015 End-December 2015 End-March 2016

Order book (€m)

Key figures at Bouygues Immobilier

59

(a) Definition: residential property reservations are reported net of cancellations and excluding VAT. Commercial property reservations are firm orders which cannot be cancelled (notarised deeds of sale)

Reservationsa (€m) Commercial property Residential property

€ million Q1 2015 Q1 2016 Change Sales 513 475

• 7%b
• /w residential

427 397

• 7%
• /w commercial

86 78

• 9%

Current operating profit

Current operating margin 27 5.3% 25 5.3%

• €2m

0pts

Net profit att. to the Group 15 16 +€1m

(b) Down 7% like-for-like and at constant exchange rates

ANNEX

+7% +1% +9%

YoY evolution 306

324 382 426 131 40 160 5 437 364 542 431 Q1 13 Q1 14 Q1 15 Q1 16

+12%

• 20%

ns

3,262 3,037 3,169 2,901 2,712 4,587 4,686 4,910 4,182 4,294 7,849 7,723 8,079 7,083 7,006

End- Mar 2015 End- Mar 2016 End- Jun 2015 End- Jun 2016 End- Sep 2015 End- Sep 2016 End- Dec 2015 End- Dec 2016

Key figures at Colas

60

Mainland France International and French overseas territories

• 2%
• 7%

+2%

€ million Q1 2015 Q1 2016 Change Sales

• /w France
• /w international

1,979

1,189 790

1,754

1,084 670

• 11%a
• 9%
• 15%

Current operating profit/(loss) Current operating margin (244)

• 12.3%

(223)

• 12.7%

+€21m

• 0.4pts

Operating profit/(loss) (244) (238)b +€6m Net profit/(loss) attr. to the Group (170) (171)

• €1m

(a) Down 7% like-for-like and at constant exchange rates (b) Including non-current charges of €15m essentially related to the cessation of SRD’s activity

Order book (€m)

ANNEX

Key indicators at Bouygues Telecom (1/2)

61

ANNEX

(a) Plan subscribers: total customer base excluding prepaid and MtoM customers according to the Arcep definition (b) Machine-to-Machine (c) Includes broadband and very-high-speed broadband subscriptions according to the Arcep definition (d) Arcep definition: subscriptions with peak downstream speeds higher or equal to 30 Mbit/s (e) Sales excluding the ideo discount

Q1 2014 Q2 2014 Q3 2014 Q4 2014 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 2015 Q1 2016

('000) End of period

Mobile customer base 11,064 11,024 11,048 11,121 11,121 11,273 11,433 11,641 11,890 11,890 12,130

• /w plana excluding MtoMb

8,476 8,498 8,523 8,596 8,596 8,742 8,889 9,038 9,139 9,139 9,290

• /w MtoMb

1,464 1,486 1,508 1,534 1,534 1,585 1,648 1,727 1,799 1,799 1,879

• /w prepaid

1,124 1,040 1,017 991 991 946 896 876 952 952 961 Fixed broadband customer basec 2,113 2,215 2,319 2,428 2,428 2, 524 2,602 2,696 2,788 2,788 2,859

• /w very-high-speedd

378 368 368 378 378 392 398 396 406 406 407

€m Quarter

Sales from mobile network Sales from fixede network 748 219 752 222 752 223 724 230 2,976 893 700 232 707 245 725 253 710 253 2,842 983 714 257

Key indicators at Bouygues Telecom (2/2)

62

ANNEX

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016

Mobile ARPUa

€/month/subscriber

24.2 24.4 24.6 23.8 22.7 22.8 23.3 22.8 22.4

Plana ARPU €/month/subscriber 26.3 26.3 26.3 25.5 24.3 24.3 24.7 24.1 23.6 Prepaida ARPU €/month/subscriber 8.9 8.8 9.3 9.2 7.5 7.2 7.6 7.3 7.0

Data usageb

MB/month/subscriber

521 617 783 950 1,032 1,216 1,318 1,434 1,635 Text usagec

Texts/month/subscriber

347 352 323 344 342 336 323 330 320 Voice usagec

Minutes/month/ subscriber

459 493 484 514 512 525 497 527 521 Fixed ARPUd

€/month/subscriber

33.0 31.7 30.4 29.6 28.6 29.3 29.4 28.1 27.7

(a) Quarterly ARPU, adjusted on a monthly basis, excluding Machine-to-Machine SIM cards and free SIM cards (b) Quarterly usage, adjusted on a monthly basis, excluding Machine-to-Machine SIM cards (c) Quarterly usage, adjusted on a monthly basis, excluding Machine-to-Machine SIM cards and internet SIM cards (d) Quarterly ARPU adjusted on a monthly basis, excluding BtoB

Sales by sector of activity

63

€ million Q1 2015 Q1 2016 Change

Change like-for-like and at constant exchange rates

Construction businessesa

5,203 4,937

• 5%
• 3%
• /w Bouygues Construction

2,779 2,771 0% 0%

• /w Bouygues Immobilier

513 475

• 7%
• 7%
• /w Colas

1,979 1,754

• 11%
• 7%

TF1 475 482 +1%

• 3%

Bouygues Telecom 1,063 1,131 +6% +6% Holding company and other 37 40 +8% +8% Intra-Group eliminationsb (115) (119) nm nm TOTAL

• /w France
• /w international

6,731

4,503 2,228

6,534

4,361 2,173

• 3%
• 3%
• 2%
• 2%
• 3%

+1%

ANNEX

(a) Total of the sales contributions (after eliminations within the construction businesses) (b) Including intra-Group eliminations of the construction businesses

Contribution to Group EBITDA by sector of activity

64

€ million Q1 2015 Q1 2016 Change

Construction businesses (86) (116)

• €30m
• /w Bouygues Construction

72 63

• €9m
• /w Bouygues Immobilier

15 8

• €7m
• /w Colas

(173) (187)

• €14m

TF1 26 54 +€28m Bouygues Telecom 118 146 +€28m Holding company and other (14) (14) €0m TOTAL 44 70 +€26m

EBITDA = current operating profit + net depreciation and amortisation expenses + net provisions and impairment losses - reversals of unutilised provisions and impairment losses

ANNEX

Contribution to Group current operating profit by sector of activity

65

€ million Q1 2015 Q1 2016 Change

Construction businesses

(146) (116) +€30m

• /w Bouygues Construction

71 82 +€11m

• /w Bouygues Immobilier

27 25

• €2m
• /w Colas

(244) (223) +€21m TF1

28 15

• €13m

Bouygues Telecom

(62) (33) +€29m

Holding company and other

(14) (6) +€8m

TOTAL

(194) (140) +€54m

ANNEX

Contribution to Group operating profit by sector of activity

66

€ million Q1 2015 Q1 2016 Change Construction businesses (146) (136) +€10m

• /w Bouygues Construction

71 78a +€7m

• /w Bouygues Immobilier

27 24a

• €3m
• /w Colas

(244) (238)b +€6m

TF1 28 (19)c

• €47m

Bouygues Telecom (84)d (55)d +€29m Holding company and other (14) (17)

• €3m

TOTAL (216) (227)

• €11m

ANNEX

(a) Including non-current charges of €4m at Bouygues Construction and €1m at Bouygues Immobilier related to their adaptation plans (b) Including non-current charges of €15m essentially related to the cessation of activity at SRD in Dunkirk (c) Including non-current charges of €34m related to the change in accounting treatments of French drama, the transformation plan and the operating loss of the LCI channel (d) Including non-current charges of €22m in Q1 15 and €22m in Q1 16 essentially related to the roll-out of network sharing with Numericable-SFR

Contribution to Group net profit by sector of activity

67

€ million Q1 2015 Q1 2016 Change Construction businesses

(98) (103)

• €5m
• /w Bouygues Construction

51 47

• €4m
• /w Bouygues Immobilier

15 16 +€1m

• /w Colas

(164) (166)

• €2m

TF1

14 (6)

• €20m

Bouygues Telecom

(49) (40) +€9m

Alstom

0a 0b €0m

Holding company and other

(24) (31)

• €7m

Net profit/(loss) attr. to the Group

(157) (180)

• €23m

Net profit/(loss) attr. to the Group excl. exceptional itemsc

(145) (137) +€8m

ANNEX

(a) After taking into account Alstom’s contribution to Bouygues' net profit and a partial reversal of the write-down against Bouygues’ interest in Alstom recognized in 2013 (b) After taking into account Alstom’s contribution to Bouygues' net profit, the impacts on Bouygues’ accounts of the sale of Alstom’s Energy business, the public share buy-back offer carried out in January 2016 and the reversal of the balance of the write-down recognized at Bouygues at 31 December 2015 (c) See reconciliation on slide 46

Contribution to Group net cash flow by sector of activity

68

€ million Q1 2015 Q1 2016 Change Construction businesses (11) (25)

• €14m
• /w Bouygues Construction

104 85

• €19m
• /w Bouygues Immobilier

17 13

• €4m
• /w Colas

(132) (123) +€9m

TF1 5 39 +€34m Bouygues Telecom 116 160 +€44m Holding company and other (23) (30)

• €7m

TOTAL

87 144 +€57m

ANNEX

Contribution to Group net capital expenditure by sector of activity

69

€ million Q1 2015 Q1 2016 Change Construction businesses 72 80 +€8m

• /w Bouygues Construction

32 35 +€3m

• /w Bouygues Immobilier

2 4 +€2m

• /w Colas

38 41 +€3m

TF1 5 49 +€44m Bouygues Telecom 207 238 +€31m Holding company and other 3 (1)

• €4m

TOTAL

287 366 +€79m

ANNEX

Contribution to Group free cash flow by sector of activity

70

€ million Q1 2015 Q1 2016 Change

Construction businesses (83) (105)

• €22m
• /w Bouygues Construction

72 50

• €22m
• /w Bouygues Immobilier

15 9

• €6m
• /w Colas

(170) (164) +€6m

TF1 (10)

• €10m

Bouygues Telecom (91) (78) +€13m Holding company and other (26) (29)

• €3m

TOTAL (200) (222)

• €22m

Free cash flow = cash flow - cost of net debt - income tax expense - net capital expenditure. It is calculated before changes in WCR

ANNEX

Net cash by business area

71

€ million End-March 2015 End-March 2016 Change

Bouygues Construction

2,733 2,828 +€95m

Bouygues Immobilier

94 (143)

• €237m

Colas

20 64 +€44m

TF1

572a 341b

• €231m

Bouygues Telecom

(902) (1,295)c

• €393m

Holding company and other

(6,781) (5,319)d +€1,462m

TOTAL

(4,264) (3,524) +€740m

ANNEX

(a) Including €259m related to the sale of an additional 31% stake in Eurosport International (b) Including the acquisition of Newen studios for €291m at 100% (c) Including the payment of the 1st installment of the 700 MHz frequencies for €117m (d) Including the positive impact of Alstom’ public share buy-back offer for €996m carried out in January 2016

1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 9 000 10 000

Cash €2.8bn Undrawn MLT facilities €5.5bn

(€m)

Financing

ANNEX

72

Debt maturity schedule at end-March 2016

Available cash: €8.3bn

Redemption of a €600m bond issue on 24th May

Impacts of exceptional items on net profit attributable to the Group

73

ANNEX

€ million Q1 2015 Q1 2016 Change Net profit/(loss) attributable to the Group

(157) (180)

• €23m
• /w non-current income/charges related to

Bouygues Telecom, net of taxes

12 13 +€1m

• /w non-current income/charges related to the construction

businesses, net of taxes

• 13

+€13m

• /w non-current income/charges related to TF1, net of taxes
• 10

+€10m

• /w non-current income/charges related to the holding company,

net of taxes

• 7

+7€m

Net profit/(loss) attr. to the Group excluding exceptional items

(145) (137) +€8m

Shareholder structure at 31 December 2015

A stable share ownership structure

20.4% 21.4% 20.9% 37.3%

74

27.9% 28.6% 16.6% 26.9% SCDM Employees Other French shareholders Voting rights

At 31 December 2015: 345,135,316 shares and 489,224,737 voting rights. SCDM is a company controlled by Martin and Olivier Bouygues

Capital Foreign shareholders SCDM Employees Other French shareholders Foreign shareholders 

42% of the capital (57% of voting rights) is shared between the Bouygues family and employees



Bouygues is the CAC 40 company with the highest level of employee share ownership



Nearly 60,000 employees owned shares in the Group, representing almost half of the total number of employees

OTHER ANNEX

19% 15% 66%

Specialty activites Building materials Roadworks

50% 22% 16% 7% 5%

France Europe (excl. France) Asia and Middle East Americas Africa

96% 4%

France International

86% 14%

Residential Commercial

23% 18% 50% 8%

North America Europe (excl. France) France Rest of the world

39% 44% 18%

Building and Civil Works France Building and Civil Works International Energies & Services

2015 sales breakdown at construction businesses

75

OTHER ANNEX

20 years of know-how in concession and PPP/PFI contracts

 A28 motorway concession  A41 motorway concession  Stade de France concession  Reims tramway concession  Libourne street lighting PPP  L2 bypass in Marseille PPP  Paris street lighting long-term contract  Vichy bypass PPP  Troissereux bypass PPP  Le Plessis-Robinson road maintenance and street lighting PPP United Kingdom  18 health, education, social housing and street lighting PFI contracts (incl. Home Office, Broomfield hospital, social housing in Brent, Hertfordshire campus etc.)  New Tyne Tunnel concession  Portsmouth road maintenance and street lighting PFI  MAC/ASC-type road and railway maintenance contracts  Central London road maintenance long-term contract Croatia  Istria motorway concession phases 1 and 2  Zagreb Airport concession South Africa  Gautrain rail link concession Jamaica  Motorway concession: highway 2000, 1A South Korea  Machang Bay Bridge concession  Pusan port concession Hong Kong  AsiaWorld-Expo concession and Marriott hotel United States  Miami port tunnel PPP Saudi Arabia  Equestrian Club PPP Cyprus  Lanarka and Pafos airport concession Singapore  Sports Hub PPP Germany  Rostock tunnel concession Hungary  M5 motorway concession  M6-M60 motorway PPP  Sport facilities PPPs (Stade Vélodrome in Marseille, Velodrom in Saint-Quentin en Yvelines)  Hospital PPPs (Bourgoin-Jailleu, Caen etc.)  Prison PPPs (Réau, Annœullin, Nantes, etc.)  PPPs in the education sector (Paris 4, Versailles Saint-Quentin universities, 5 secondary schools in Loiret)  Territorial planning PPPs (Paris, Valenciennes and Guérande street lighting, broadband network in Vaucluse, etc.)  French Ministry of Defence, Paris  Paris Law courts complex  Nîmes and Montpellier railway bypass PPP  Municipal authority complex in Bordeaux  Musical City of Boulogne  Bouygues Construction  Colas

 

Australia  Sydney metro

76

 

Ivory Coast  Highway concession

OTHER ANNEX



Poland  Krakow student’s accommodation Canada  Hospital PPP in British Columbia  Royal Canadian Mounted Police headquarters PPP  Iqaluit International Airport PPP  Long-term road maintenance contracts in Alberta and British Columbia Ireland  Road maintenance long-term contract

Breakdown of spectrum in France

77

Quantity of frequencies allocated to the various operators (MHz duplex)a

As at May 25th, 2016

5 10 10 20 15 15 10 10 10 20 20 20 5 10 10 20 20 15 10 5 15 5 20

700 MHz 800 MHz 900 MHz 1800 MHz 2100 MHz 2600 MHz

Bouygues Telecom Orange SFR Free



Bouygues Telecom's range of frequencies represents 25% of available spectrum, giving it the best MHz/customer ratio on the market

(a) The quantity of FDD (Frequency Division Duplexing - a technique where two separate frequency bands are used at the transmitter and receiver side) spectrum is rounded up or down. Source: Arcep (b) 700 MHz will be available for use from 6 April 2016 for Ile-de-France and progressively between 2017 and 2019 for the rest of France (c) In the 1800 MHz band, SFR and Orange will return 5MHz each to Iliad by 25 May 2016, as decided by Arcep on 19 December 2014

OTHER ANNEX

TOTAL % of total

55 80 90 75 18% 27% 30% 25%

b c

Long-term competitive edge in mobile



Extension of 4G coverage

 75% of the population at 1 January 2016  Acceleration in less dense areas via the network sharing agreement with Numericable-SFR  Targets: 82% of the population at end-2016 and 99% in 2018 

Increased densification of the network to provide higher speeds (4G+, boosted 4G+)

 Bouygues Telecom has more than 11,500 frequency emission points in operation in its 4Ga sites in the 4 available frequency bands (700, 800, 1800, 2600 MHz)

78

(a) Source: ANFR, number of sites and frequency emission points in operation at 1 May 2016

12,248 11,571 8,026 6,894

4G frequency emission pointsa

8,747 7,814 6,314 5,786

4G sitesa

OTHER ANNEX

79

BUILDING THE FUTURE IS OUR GREATEST ADVENTURE